SPY Report Price Volume Analysis: August-9-2016

Posted on Posted in Equities

spy-report-unframedThe S&P 500 closed @ 2181.74 (+0.85 / +0.04%), but don’t let the smooth taste fool you. Todays’ price action exhibited signs of distribution as volume on its exchange traded fund, the SPY, was -47% below average.  Market breadth analysis confirmed with the majority of its components trading on lower volume almost evenly split: 30% advancing and 31% declining.

Of course, the real stories can almost always be found in high volume surging stocks. Below is a today’s price volume analysis briefing:

  • Healthcare Sector / Drug Manufacturers: Endo Int’l PLC (ENDP) @ 22.16 (+21.83% on +361% higher volume), with dollar-volume liquidity being more than 20% of its market capitalization. Attributing the boost to last year’s acquisition of rival, Par Pharmaceutical, the company reported stronger expected earnings after yesterday’s close @ $0.86 per share vs. $0.75
  • Healthcare Sector / Medical Care: DaVita Healthcare Partners (DVA) @ 72.31 (-4.05% on +306% higher volume), is trading below both its 50 and 200 day moving averages. Although the company reported better than expected earnings @ $1.01 vs. consensus @ $0.98, it disappointed investors with a downward revision on its 2016 operating income guidance to a range of $1.785bn to $1.875bn vs. prior @ $1.8bn to $1.95bn. Relative strength also remains bearish at a level of 53.
  • Consumer Cyclical Sector / Broadcasting TV: Scripps Networks Interactive (SNI) @ 61.47 (-7.10% on 278% higher volume) beat earnings estimates while missing revenue expectations. On the positive, cash flow increased and outstanding debt was reduced. From a technical perspective, the stock is just above its 200-day moving average and may find support for a bounce as it is severely oversold in the short-term.
  • Technology Sector / Semiconductors: Microchip Technology (MCHP) @ 60.63 (+7.06% on +267% higher volume) surprised the market with a strong earnings report: actual @ $0.84 per share vs. consensus @ $0.68.
  • Consumer Cyclical Sector / Leisure: Royal Caribbean Cruises Ltd (RCL) @ 68.98 (-6.76% on +214% higher volume) simply could not find enough demand from buyers despite its stock appearing on a list of increased insider buying by CEOs. Mixed earnings and fears of the Zika virus’ impact on tourism and leisure travel are pressuring the stock’s price.

 

 

 

 

 

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